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July 30, 2020
2020-1941

New IRS proposed regulations provide simplified tax accounting rules for small businesses

In proposed regulations (REG-132766-18) issued June 30, the IRS updates various tax accounting regulations to adopt the simplified tax accounting rules for small businesses under the Tax Cuts and Jobs Act (TCJA). Generally, these regulations propose rules to implement changes the TCJA made to IRC Sections 263A, 448, 460 and 471 that simplify application of these sections for certain businesses with average gross receipts of $25 million or less. The IRS invites the public to submit comments and requests for a public hearing by September 19, 2020. A Tax Alert is forthcoming.

 

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